Holding different perspectives, the skillsets of a CFO and controller vary. Read on as we unpack the roles and responsibilities of the CFO vs the controller.
As your emerging growth company takes on more business and more employees, a central question may arise: Should you bring in a controller or CFO, or both? Should these roles be on a part-time, fractional, or as-needed basis? Knowing the differences between these two positions and the knowledge and expertise each role can provide your growing company can help with the decision, which will likely lead toward a bit of both (perhaps not on a completely full-time/in-house level just yet).
What Is the Difference Between a Controller and a CFO?
The skills and knowledge of a controller vs. CFO can be quite diverse, depending on the person’s past experience and whether the role is responsible for overseeing one division in a company or the entire company. Generally speaking, a controller tends to be more technical in nature while a CFO is more strategic.
Controller vs. CFO Duties
Whether they are working on an interim basis or are a round-the-clock fixture in the leadership team, controllers and CFOs are usually experts in accounting and financial leadership: They can lead the finance organization through new processes and procedures, new accounting rules, questions from the senior leadership team and board, and then relay back information in a language that the recipient can understand and appreciate.
In this way, a CFO and a controller can help to bridge gaps that can prevent some companies from moving forward on decisions; they can communicate complex issues and make connections between why they matter to the business today and in terms of its business plan and goals.
Tactical vs. Strategic/Technical vs. Soft Skills
A controller could be the leader of a young company’s finance organization, and the company may not yet have a CFO on the payroll. Ideally, this person brings both technical and soft skills to the role, so they can relay what the facts and figures mean to those outside the finance department. They help to build bridges between what the finance organization is tracking and processing and analyzing, and the other critical roles around the company, from IT and procurement to distribution and manufacturing. They’re usually the ones hiring and keeping the finance talent engaged and updated on their skills.
The CFO, on the other hand, usually offers a wider perspective beyond the finance organization and will be more likely to communicate directly with the CEO, depending on the size of the company, and the board, and potential investors. CFOs often become one of the critical voices and representatives of the company, to exude confidence and transparency to what’s happening at the company and explaining in clear terms any financial matters that the outside world wants to know and is privy to.
Ideally, both the controller and CFO at a company are forward-thinking—at some companies the controller is mostly focused on the here and now while the CFO takes a more big-picture, forward-looking approach. For companies that are still new to the roles of CFO vs. controller, interim consultants can help to define these roles depending on the company’s unique situation.
When to Hire a Financial Controller and When to Hire a CFO
The availability and expertise of interim controllers and interim CFOs mean your emerging growth company does not need to rush bringing in these roles if it is not ready yet. Many of the responsibilities can be met by consultants who are prepared to become a part of the finance organization—and even lead it for a time—to help your company get through a transitional period, scale to systems and processes that better fit for the company size you are now, and more.
In many cases, companies need more strategic and analytical expertise in their finance teams—and an interim controller or interim CFO can help to broaden the thinking and outlook—and get the company closer to realizing its latest goals. RoseRyan can help you think through the level of finance leadership expertise your company needs now—reach out to us today to learn more.
